Medigap insurance rates can range in pricing. The same amount of coverage and policy limits can vary from one insurance company to the next. If you are shopping around to compare prices, make sure you are comparing the same type of Medigap policies.

Premiums are set in place by each individual insurance company for Medigap plans. You can inquire with each company as to how they price their Medigap plans. Their method of pricing can make a difference in how much they charge for policies now and in the future. There are three separate ways that Medigap plans can be priced or “rated”:

Community-Rated or No-Age Rated

With this type of pricing, everyone who is insured under the policy will see the same monthly premium, no matter their age. However, premiums can increase due to inflation and other factors. This means that if you are 65, but your spouse is 75, you will both still pay the same monthly Medigap policy premium.

Issue-Age-Rated Policies

For this type of policy, the premium is based on the age of the policyholder at purchase. Younger policy buyers will see lower prices. The premiums will not change as you get older but can increase for other reasons, such as inflation or other factors. For example, you buy a Medigap plan at age 65 for $140 per month. However, your neighbor is 78 when he purchases his policy, so his monthly premium is $185.


Unlike the other two pricing policies, this plan is based on your current age. This means that your policy premium will go up as you get older. In addition, they can increase based on other factors, such as inflation. For example, you are 65 when you buy your Medigap policy. You will pay $120 per month to maintain your coverage. Your premium will go up each year as you get older. At age 66, you may pay $126 per month. At age 67, it might increase to $132. At age 72, you might be paying $165 per month. However, if your sister is 72 at the time she purchases her Medigap plan, her premium might start higher at $165 per month. It will then go up from $165 each year as she gets older.

Other Factors that Influence Cost

Many other factors can contribute to the price of your Medigap rates, either at the time of purchase or anytime throughout the life of your policy. Certain insurance companies can offer various discounts based on gender, marital status, and whether or not the policy-holder smokes. Some will offer discounts if you pay with electronic funds transfer. Selecting a policy that requires you to use certain care providers may reduce your monthly Medigap premium amount. Increasing your deductible for Medigap Plan F can also decrease the monthly premium amount.